Answered step by step
Verified Expert Solution
Question
1 Approved Answer
[12] Pete, a self-employed CPA, went to Los Angeles for 3 weeks. He spent 1 week analyzing his clients' investments in the Westwood area, 1
[12] Pete, a self-employed CPA, went to Los Angeles for 3 weeks. He spent 1 week analyzing his clients' investments in the Westwood area, 1 week at a continuing education conference that relates to his CPA practice, and 1 week playing tennis. Pete's round-trip airfare was $600) the hotel bill was ($1,200, meals provided by restaurants (all under $75) were $450, tuition was for only the airfare and hotel bill. How much track of all expenses in a diary, but he had documentary A. $1,700 B. $2,050 C. $1,850 D. $2,200 [13] Matt operates a sole proprietorship and files his return on a calendar-year basis. He took out a fire insurance policy for his business effective July 1, Year 1 , and paid a premium of $3,600 for 4 years. Matt reports his income and expenses on a cash basis. What is Matt's deductible insurance expense for Year 1 ? A. $3,600 B. $0 C. $450 D. $900 [14] The expenses from an activity are not deductible if that activity is classified as a hobby. A taxpayer may, however, establish the presumption that an activity (one not related to horses) is a bona fide business engaged in for profit if the activity A. 15 profitable at least 2 out of 7 consecutive years. B. Is profitable at least 3 out of 5 consecutive years. C. Shows a profit at least 50% of the time. D. Is profitable at least 2 out of 5 consecutive years
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started